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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
INSTRUCTOR:
TEACHING ASSISTANT:
Tyler Rameson
email: rameson@mit.edu
GRADING
1. Written Assignments: 25%
2. Examination: 25%
3. Project: 25%
4. Contributions to class discussion: 25%
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
WRITTEN ASSIGNMENTS
There will be several written assignments due during the semester, including:
· Due Wednesday, September 12: Team list and project description paragraph
· Due Wednesday, September 12: Midwest industries team assignment
· Due Monday, September 24: Conjoint homework
· Due Wednesday, October 31: Team project progress report, 1-2 pages
· Due Wednesday, November 7: Parallel & Sequential Prototyping Homework
· Due Wednesday, December 12: Team project final report
· Additional short assignments may be assigned during the semester
EXAMINATION
There will be an 80 minute, short answer and/or multiple-choice, in-class exam on
Monday, November 19, beginning at 1:05pm. Students who have done the readings
and attended all class sessions will have an advantage during this exam.
PROJECT
Objective: The project provides an opportunity for in-depth study or application of the
techniques or concepts discussed in class. The project should be done in groups of four
to five. A number of possible topics will be provided, but this list is by no means
exhaustive and students are free to propose their own ideas. If you are having trouble
selecting a project, or would like additional alternatives, please talk to Professor Dahan
or the course TA.
Deliverables: A project outline will be due relatively early in the semester, followed by
a mid-term progress report, and a final report (oral and written). Specifically:
Wed., Sept. 12, 2001: One-paragraph description of project is due along with team list.
Wed., Oct. 31, 2001: Mid-term project progress report is due, possible project review meeting.
Wed., Dec. 12, 2001: Written report is due. Also, each group is to give a 10 minute
presentation summarizing the results of their project.
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Page 4
15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 1
Wednesday, September 5, 2001
Introduction to New Product Development
We study the connections between product design, development, and
manufacturing. These ideas are related to customer satisfaction, product cost,
and manufacturing efficiency. Our goal is to show how advanced planning can
improve products, processes and profits.
Readings (26 pages)
Course Outline (this document)
Case: “SweetWater.” HBS Case [9-695-026]
“Producer Power.” The Economist. March 4, 1995. p. 70.
Bronson, Po. “Is Anyone…Still Making Things”. Wall Street Journal. Aug. 16,
1999. p. A14.
Assignment: Consider the following study questions for class discussion:
· What steps will Sandy Platter need to take in order to be successful? How
would you proceed with these steps?
· How are the functions of product design and manufacturing connected?
Is this important in terms of customer satisfaction? Time-to Market? Profits?
· What should drive product decisions made by firms? What does drive them?
· What role do suppliers and distributors play in determining product design?
· How much should Sandy charge for his product?
Session 2
Monday, September 10, 2001
Successfully Managing New Product Development
Readings (10 pages)
Syre, Steven. “Polaroid’s best shot.” The Boston Globe Magazine. April 25, 1999.
pp. 8-30.
Strudler, Shelby. “Not-so sharper image.” Journal Gazette. April 18, 1999. Web
download. 1p.
Assignment:
Prepare the following study questions for class discussion:
· What challenges did Polaroid face in developing PopShots?
· What would you have done if you were in Herchen’s position?
· What characterizes a successful new product development process?
· How can firms improve new product development?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 3
Wednesday, September 12, 2001
Design for Manufacturability (DFM) / Target Costs
Decisions regarding product design must consider the specific capabilities of the
manufacturing plant in which the product will ultimately be produced. A somewhat
structured methodology, known as Design for Manufacturability (DFM), has been
developed for this purpose.
Read the case and articles and think about the following questions:
· How should design guidelines be used? Who should be on DFX teams?
· Why is product cost so important to firms like Toyota?
· Should a marketing manager care about cost?
· What determines the cost of each part in a product? What should determine it?
• How should target costs be set?
• What information would be most useful when setting them?
• How do DFM and Target Costing relate?
· Identify some characteristics of an organizational structure and culture that
promotes the implementation of DFM.
· For those of you with industrial experience, how is DFM implemented in the
organizations in which you work (or have worked)?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 4
Wednesday, September 19, 2001
Listening to the Customer
Guest Speaker: Jamie Boyer, Marketing Research Director, IBM Mobile Products
Session 5
Monday, September 24, 2001
Conjoint Analysis
Products can be described as a bundle of attributes such as price, function,
aesthetics, etc.. Conjoint analysis allows individual customers to indicate the
degree to which each attribute matters to them.
Session 6
Wednesday, September 26, 2001
Creating Value
After the tradeoffs between customer needs and firm capabilities have been made,
detailed design of parts and processes soon follow. This session is devoted to the
process of allocating cost to components of the final product. We consider the notion of
product concept testing.
Readings (16 pages)
Dahan, Ely, “Note on Listening to the Customer: Part II”. pp. 1-7.
Ishii, Kos, P. Barkan & M. Hinckley. “Design for Value Notes.” Jan, 1991. pp. 1-11.
Assignment:
Prepare the following study questions for class discussion:
· How do you test whether your design is good or not? When do you know?
· How do the different types of customer needs raised by Kano, User
Observation, Cultural Anthropology and Benefit Chains affect product
design? Marketing? Manufacturing
Keys: Value Analysis, QFD, Kano, Kansei, User Observation, Cultural
Anthropology, Benefit Chains
Session 7
Monday, October 1, 2001
Disruptive Technologies
Readings (22 pages)
“Disruptive Technologies Catching the Wave.” Harvard Business Review. [95103]
Martin, Justin, “Ignore Your Customer”. Fortune. May 1, 1995. pp. 121-126.
Mack, Toni and Mary Summers. “Danger: Stealth attack.” Forbes. January 25,
1999. pp. 88-93.
Takahashi, D. “Intel…Info. Appliances Threat.” Wall Street Journal. August 12,
1999. p. B6.
Assignment:
Prepare the following study questions for class discussion:
· Why should firms sometimes ignore their customer?
· What, exactly, should be ignored? What should not be ignored?
· Have other industries followed the same path as the disk drive industry?
· How would you solve the problem of disruptive threats?
· What do you think about the threat to Intel? About Intel’s response?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 8
Wednesday, October 3, 2001
Product Development on Internet Time
Guest Speaker: Jay Ong, Microsoft, Tablet PC Group
Readings (20 pages)
Case: “Living on Internet Time: Product Development at Netscape, Yahoo!TM
NetDynamics, and Microsoft®” HBS. April 21, 1997. pp.1-12. [9697052]
Assignment: Consider the following study questions for class discussion:
· Contrast the development approaches followed by the four organizations.
· How does fast clockspeed affect product development? Which elements of
the product development approaches will survive as the Internet evolves?
· What traditional marketing practices must adjust to fit this new reality?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 11
Wednesday, October 17, 2001
Concept Selection
Guest Speaker: Matt Haggerty, President, Product Genesis
Once the customer’s voice has been captured, many product and process
decisions need to be made. The choice of a particular product concept requires
objective methods of comparing the alternatives and selecting the “best.”
Readings (20 pages)
Kim, W. Chan and Renée Mauborgne. “Knowing a Winning Business Idea When
You See One.” Harvard Business Review. Sept.-Oct. 2000. pp. 129-137.
[R00510].
Sherman, Stratford. “When Laws of Physics Meet the Law of the Jungle.”
Fortune. May 15, 1995. pp. 193-194.
Pugh, Stuart. “Concept Selection: A Method That Works” Creating Innovative
Products Using Total Design. 1996. pp. 167-176.
Assignment: Prepare the following study questions for class discussion:
· Under what conditions does Pugh’s technique make sense to you?
· How has your team sorted out competing concepts?
Keys: Cross-Functional Teams, Pugh Concept Selection, TRIZ
Session 12
Monday, October 22, 2001
Lead Users
Guest Speaker: Angela Liao, Microsoft, Pocket PC Group
Reading (23 pages)
· Case: “Innovation at 3M Corporation (A).” HBS Case [9-699-012]
· Optional: “Note on Lead User Research.” HBS Note [9-699-014]
Assignment:
· How has 3M’s innovation process evolved since the firm’s founding?
· What characterizes an ideal lead user?
· How does the Lead User method compare with other market research methods?
· Has the Medical-Surgical team applied Lead User research appropriately?
· What should the Medical-Surgical team recommend to Dunlop: the three
new product concepts or a new business strategy?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 13
Monday, October 24, 2001
Creativity, Ideation, Lateral Thinking I
Readings (18 pages)
Lancaster, Hal. “How to Think Outside the Box.” The Wall Street Journal.
November 19, 1997. p. 6G
Staw, Barry M. “Why No One Really Wants Creativity.” Creative Action in
Organizations. pp. 161-166
Lutz, Robert A. “We Just Did It: The Story of the Viper.” AutoWeek. October 5,
1998. pp. 20-22.
Sorge, Marjorie. “Time to Listen to the Kinky Guys.” Automotive Industries.
September, 1996. p. 5.
Flint, Jerry. “Creativity is Back.” Ward’s Auto World. November, 1996. p. 23.
O’Reilly, Brian. “New Ideas New Products.” Fortune. Mar. 3, 1997. pp. 60,62&64.
Garber, Joseph R. “What if…” Forbes, November 2, 1998. pp. 76, 78 & 79.
Assignment:
Bring to team meeting with Professor Dahan, but no later than October 31,
a 1-2 page report describing the progress your team has made on the
course project (one per team). Submit BOTH an email version (to
edahan@mit.edu) and a hardcopy version. The file name must be:
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 14
Monday, October 29, 2001
Industrial Design
Guest Speaker: Charles Mauro, President, MauroNewMedia
Our guest will be discussing research on user interfaces.
Readings (5 pages)
Takahashi, Dean. “Intel is Pushing…Simpler Personal Computers”. Wall Street
Journal. November 4, 1998.
Manes, Stephen. “Computers 1, Humans 0.” Forbes. April 5, 1999. p. 132.
Naughton, Keith. “How Ford’s F-150 Lapped the Competition.” Business Week.
July 29, 1996. pp. 74-76
Assignment:
Prepare the following study questions for class discussion:
· What role does industrial design play in a product’s success?
Session 15
Wednesday, October 31, 2001 (Happy Halloween!)
Mass Customization
Previous sessions have covered techniques that enable a product design to be tailored to
customer needs. We now explore the boundary between product design and
manufacturing. Intuition regarding the behavior of manufacturing systems will be
developed. We will also uncover lessons for the product developer that promote
greater manufacturing system performance. We will explore the concept of flexibility,
how to quantify it, and how to speed up design and manufacturing.
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 16
Monday, November 5, 2001
Prototyping I
Even after listening to customers and planning the design, cost, and engineering of a
new product, some uncertainty about its future success remains. Prototyping new
designs in physical and virtual ways reduces the uncertainty and improve results.
Parallel prototyping, i.e. conducting multiple experiments aimed at solving the same
problem, can produce even better results, but may pose challenges. We will also get an
introduction to QFD.
Session 17
Wednesday, November 7, 2001
Parallel & Sequential Prototyping, Set-Based Design
In today’s session we will continue discussing prototyping as a tool for resolving
market and technical uncertainty in New Product Development, and in
particular look at the notion of carrying multiple design options forward through
set-based design and parallel or sequential prototyping.
Readings: (19 pages)
Ward, Allen, Liker, Cristiano, Sobek. “Second Toyota Paradox” Sloan
Management Review, Spring 1995. pp. 43-61
Assignment:
Turn in the Parallel & Sequential Prototyping homework assignment
Prepare the following study questions for class discussion:
· Why is Toyota developing more prototypes than its competitors?
· What role does CAD play in prototyping? What effect will lower CAD
and simulation costs have on new product development?
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
Session 18
Wednesday, November 14, 2001
Review for Exam
Readings: (4 pages)
Course Summary
Assignment:
Come to class prepared to discuss key course concepts and to answer
typical exam questions.
Session 19
Monday, November 19, 2001
EXAMINATION
Session 20
Wednesday, November 21, 2001
No class meeting today
Please take this opportunity to have team project meetings.
Session 21
Monday, November 26, 2001
Live Case or Guest Speaker to be announced
Session 22
Wednesday, November 28, 2001
Guest Speaker: Rob Chess, CEO, Inhale Therapeutics
Readings:
Please read the background material on Inhale Therapeutics and visit the
company’s web site at http://www.inhale.com
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15.828: New Product Development
September 5 to December 12, 2001
Mon-Wed, 1:05pm-2:25pm, E56-270
first slide should show your project name and the team member names.
The file name must be:
15.828 project name.ppt (e.g. 15.828 Microsoft Tablet PC 2.ppt)
Session 23
Monday, December 3, 2001
The Virtual Customer
Readings: (19 pages)
Dahan, Ely and John R. Hauser. “The Virtual Customer: Communication,
Conceptualization, and Computation.” Sloan working paper.
Assignment:
Prepare the following study questions for class discussion:
· How can each of the methods described be integrated into the NPD
process?
· What are the pros and cons of Web-based NPD research?
Session 24
Wednesday, December 5, 2001
Team Summary Presentations
Session 25
Monday, December 10, 2001
Team Summary Presentations
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